HYDROGEN

Hydrogen

(Future visioned business)

Potential to use solar & wind for electrolysis to produce green hydrogen once technology
has matured and infrastructure is developed (5 to 10-year horizon)

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The majority of existing studies predict a significant increase in global hydrogen demand. The global demand for hydrogen also depends heavily on the respective regional climate policy and how ambitious it is. The range of total hydrogen demand in 2050 is projected to be between 4 and 11 percent of global energy demand. However, there are strong regional differences: For the EU, the share could be up to 14 percent, while for China, the majority of scenarios only show a hydrogen share of a maximum of 4 percent of the total energy. The projections of hydrogen demand vary considerably, which is why there are significant differences in the classification of the role of hydrogen in future energy systems.

BUSINESS LINE OVERVIEW

Hydrogen’s diverse uses and role in climate goals come with opportunities and hurdles.
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Significance in Transport Sector

Hydrogen is expected to have the highest demand in the transport sector, constituting 28 percent of the EU’s energy requirements by 2050, compared to 14 percent in China and 16 percent globally. 

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'No Regret' Option

While the overall demand for hydrogen in the industrial sector is expected to be smaller than in transport, it is considered a ‘no regret’ option due to the absence of decarbonization alternatives in key industries like iron and steel and basic chemistry.
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Meeting Global Climate Goals

Meeting ambitious global climate goals necessitates a substantial supply of green hydrogen. However, profitability issues, engineering challenges, and industry maturation are obstacles to meeting this demand in the short term.